Tokyo, July 21: The board of directors of Tokai Carbon Co., Ltd. has made a resolution to issue Japanese-yen convertible notes in the amount of 10 billion yen.

Outline

Issuer:	TOKAI CARBON CO., LTD. Aoyama Bldg. 2-3, Kita-Aoyama 1-chome, Minato-ku, Tokyo 107-8636, Japan
Aggregate principal amount:	JPY 10,000,000,000
Denomination:	Bearer Notes of JPY 1,000,000 each with a stock acquisition right (shinkabu yoyakuken) (the "Stock Acquisition Right")
Coupon:	Zero coupon
Issue Price:	Price of 100 per cent. of the principal amount of the Notes, and the issue price of the Stock Acquisition Rights being zero
Closing date:	August 10, 2004
Final maturity:	August 8, 2008